What’s Moonbeam?
Moonbeam is a blockchain platform that goals to offer a seamless bridge between completely different ecosystems within the decentralized finance (DeFi) house. Constructed on the Polkadot community, and being absolutely suitable with the Ethereum Digital Machine (EVM), Moonbeam permits builders to construct and deploy decentralized purposes (dApps) in a approach that’s interoperable with different blockchains. Its design permits it to assist a variety of use instances, together with stablecoins, lending and borrowing, and tokenization.
Historical past
Moonbeam was based in 2020 by the group at PureStake, an organization that gives infrastructure providers for blockchain networks. Its native token is Glimmer (GLMR), which is used for governance and transaction charges on the Moonbeam community. Moonbeam was launched with the objective of creating it simpler for builders to create dApps which might be interoperable with different blockchains, and it was designed to be absolutely suitable with the Ethereum Digital Machine (EVM). Moonbeam has a singular tokenomics mannequin that makes use of a staking mechanism to incentivize participation and supply safety for the community. Validators on the community can stake GLMR tokens to take part in block manufacturing, and they’re rewarded with transaction charges and newly minted GLMR tokens.
Moonbeam’s Expertise
Moonbeam is constructed on the Polkadot community, which makes use of a singular consensus mechanism known as nominated proof-of-stake (NPoS). This consensus mechanism is designed to offer quick and safe transaction processing, whereas additionally permitting for a excessive diploma of scalability.
In easy phrases, validators are elected by token holders to provide blocks and safe the community, and they’re incentivized to behave actually by way of a system of rewards and penalties.
Along with the Polkadot community, Moonbeam makes use of a know-how stack that features the Substrate framework, which offers a modular structure for constructing blockchain purposes, and the Parity Ethereum shopper, which permits EVM compatibility.
Moonbeam’s know-how stack is designed to be developer-friendly and versatile, making it simple for builders to construct and deploy dApps on the platform.
Polkadot Interoperability
Moonbeam’s integration with the Polkadot ecosystem brings a number of advantages that allow interoperability with different blockchains. First, Polkadot’s cross-chain messaging protocol (XCMP) is poised to permit Moonbeam to speak with different parachains on the Polkadot community and change belongings and knowledge. Which means that Moonbeam can simply work together with different blockchains which might be additionally linked to Polkadot.
Moreover, by being a part of the Polkadot ecosystem, Polkadot’s shared safety mannequin permits Moonbeam to learn from the safety offered by the Polkadot community, which is among the most safe and scalable blockchain networks within the business. Which means that Moonbeam is ready to present a excessive stage of safety for its customers, with out having to rely by itself safety infrastructure. Lastly, as a part of the Polkadot ecosystem, Moonbeam can reap the benefits of the community results and neighborhood of builders and customers which might be already constructing on Polkadot.
Ethereum Interoperability
The Ethereum Digital Machine (EVM) is a software program atmosphere applied as a part of the Ethereum blockchain, which executes good contract code. It acts as a runtime atmosphere for good contracts in Ethereum, permitting them to be executed on any community node and guaranteeing the consistency of the state of the blockchain.
As a result of the Moonbeam chain is suitable with the Ethereum Digital Machine (EVM), because of this DApps on Moonbeam can simply be interacted with utilizing an EVM-compatible pockets equivalent to Metamask. This additionally implies that builders from Ethereum and EVM-chains can rapidly port their DApps over to Moonbeam with minimal modification.
The GLMR Token
GLMR is the native utility token of the Moonbeam community, which is a brilliant contract platform that goals to offer Ethereum-compatible performance to builders constructing decentralized purposes. GLMR is used to pay for transaction charges, in addition to for staking and governance on the community.
The provision of GLMR is uncapped, with roughly 576,345,576 presently in circulation. Regardless of the apparently inflationary tokenomics, GLMR does characteristic a ‘burn’ mechanism that will increase the diploma of deflation in proportion to the gasoline charges paid per transaction. Every time GLMR is used to pay for transaction charges on good contracts, 80% of these particular tokens are destroyed by way of “burning”.
The token was initially distributed by way of a personal and public sale, with a portion reserved for ecosystem development and growth.
As of February 2023, in line with CoinMarketCap, the token is presently valued at $0.43, with the market cap being roughly $245 million, with a totally diluted market cap of over $442 million.
Moonbeam Ecosystem
There are roughly 40 apps that exist within the Moonbeam ecosystem, which incorporates some well-known ones like Moonwell Artemis and StellaSwap.
As for the entire worth locked (TVL), it presently stands at over $87.34m as of 14 February 2023, with native lending protocol Moonwell Artemis making up over 50% of the share of TVL on Moonbeam.
Moonwell Artemis
Moonwell Artemis is the most important lending and borrowing protocol on Moonbeam, analogous to DApps equivalent to Aave or Compound on Ethereum. It’s a part of the broader Moonwell mission, which options an open lending, borrowing, and decentralized finance protocol constructed on not solely Moonbeam, but additionally Moonriver.
StellaSwap
StellaSwap is the most important decentralized change (DEX) on Moonbeam. It options an built-in platform permitting customers to carry out a spread of actions equivalent to swapping, yield farming, incomes, bridging belongings, exploring new initiatives, and NFT buying and selling. StellaSwap’s choices are designed to allow decentralized governance for $STELLA native token holders.
TrustWallet
Belief Pockets is a well-liked cellular cryptocurrency pockets that permits customers to securely retailer, handle, and change a variety of digital belongings. Backed by Binance, one of many largest cryptocurrency exchanges, Belief Pockets is designed to offer customers with a easy and intuitive interface. The pockets helps a lot of cryptocurrencies, and options customized EVM community assist, due to this fact together with assist for Moonbeam.
MathWallet
One other standard pockets is MathWallet. MathWallet is a cellular app-based pockets that helps all EVM suitable chains, making this an excellent possibility in case you are yield farming throughout a number of Ethereum-based chains. Likewise, MathWallet absolutely helps interactions with the Moonbeam chain.
MathWallet provides cellular apps for each iOS and Android, and in addition includes a browser extension possibility should you’d prefer to handle your positions on desktop.
MetaMask
Metamask wants no introduction: it’s a standard browser extension and cellular pockets that permits customers to work together with decentralized purposes (dApps) constructed on the Ethereum community and EVM-compatible chains. The extension integrates with most dApps and offers a seamless, safe, and handy approach for customers to entry and use decentralized providers.
As a result of Moonbeam is suitable with EVM, you might be additionally ready to make use of MetaMask to work together with DApps on Moonbeam.
Staking on Moonbeam
You may delegate your Moonbeam tokens to collators to earn staking rewards. The next steps will be taken with a purpose to stake your Moonbeam GLMR tokens.
- Join your account to the Moonbeam dApp and settle for permissions.
- Change your MetaMask community to Moonbeam. The dApp will immediate you to take action.
- Change the community to Moonbeam and go to the principle dashboard to view account particulars.
- Delegate a collator candidate by clicking on ‘delegate’. You’ll then arrive on the Staking web page.
5. Then, select the quantity of tokens you want to stake.
6. Collators will share rewards acquired from producing blocks amongst all their delegators.
7. Your reward will probably be primarily based on the quantity you contributed in comparison with the entire quantity bonded to the collator.
8. For extra data on reward distribution, try Moonbeam’s documentation on staking reward distribution.
Yield Farming on Moonbeam
The ecosystem for Moonbeam continues to be comparatively younger. However, you possibly can yield farm on Moonbeam utilizing StellaSwap, Moonbeam’s highest-TVL DEX, together with Moonwell Artemis, the most important lending protocol on Moonbeam. On this first half, we’ll use StellaSwap for instance to debate how one can yield farm on Moonbeam. As of Mid February 2023, the highest farms are paying out the next yields:
The method of swapping and including liquidity is generally much like that on Ethereum-based DEXes, so in case you are already aware of yield farming on EVM-compatible ecosystems, you’ll really feel proper at house.
- To make use of Moonbeam, you’ll first must buy some $GLMR tokens. This may be performed simply on a spread of centralized exchanges, equivalent to Kucoin. Withdraw the tokens on to your MetaMask handle.
2. Subsequent, navigate over to the StellaSwap interface and join your Metamask.
Comply with the automated immediate to modify the community to Moonbeam. Then, head over to the ‘Swap’ web page.
3. Swap half of your GLMR tokens for the opposite coin you wish to farm with. For instance, USDC.
Then, head over to the Pool web page by clicking on ‘Earn’, and choosing ‘Pool’.
4. Select tokens you’d like so as to add Liquidity for. On this case, we’ve got chosen GLMR and USDC:
5. Click on add liquidity. As soon as the transaction has gone by way of, head over to the Farms tab and scroll to the GLMR/USDC Farm. Click on by way of, and you need to now be capable of deposit your LP tokens and begin incomes rewards!
For those who would favor to lend your tokens for yield, you all the time have the choice of Moonwell Artemis. The method is significantly less complicated than for StellaSwap. All it’s essential do is the next:
- Head over to Moonwell Artemis and Join your MetaMask, guaranteeing that the Moonbeam community is chosen.
2. Subsequent, you need to be capable of select a token to both provide or borrow from the carousel interface above.
3. Within the remaining step, merely provide the token of your selection — on this case, GLMR — on the backside left hand nook of the web page above. When you deposit your tokens, you may be incomes the Provide APY.
Ought to You Use Moonbeam?
Moonbeam is a strong platform that brings the total capabilities of the Ethereum ecosystem to the Polkadot community, enabling seamless cross-chain performance. The Moonbeam community is due to this fact well-positioned because it is among the first within the Polkadot ecosystem to advertise blockchain interoperability with Ethereum-based DApps. Furthermore, customers may gain advantage vastly from comparatively excessive yields on numerous DApps.
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